Liberty Gas Storage, LLC

Original Volume No. 1

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Effective Date: 04/15/2007, Docket: RP07-357-000, Status: Effective

Original Sheet No. 107 Original Sheet No. 107 : Effective

 

GENERAL TERMS AND CONDITIONS

(4) Prospective Customer shall confirm in writing that it is not aware of any

change in business conditions which would cause a substantial deterioration in

its financial condition, a condition of insolvency or the inability to exist as

an ongoing business entity;

(5) If Prospective Customer has an on-going business relationship with

Liberty, no delinquent balances shall be outstanding for services Liberty shall

have previously performed and Customer shall have paid its account in the past

according to the established terms and not made deductions or withheld payment

for claims not authorized by contract;

(6) Prospective Customer shall confirm in writing that no significant

collection lawsuits or judgments are outstanding which would seriously reflect

upon the business entity's ability to remain solvent;

(7) For prospective Customers that are state-regulated local distribution

companies, documentation provided by each state regulatory commission (or

equivalent authority) having jurisdiction over the local distribution company's

rates establishing the existence and effectiveness of an authorized gas cost

recovery mechanism which (x) provides for full recovery of both gas commodity

and transportation capacity costs and (y) is afforded regulatory asset

accounting treatment in accordance with Generally Accepted Accounting

Principles;

(8) A Statement of prospective Customer's legal composition and a statement of

the length of time Customer's business has been in operation; and

(9) Such other information as may be mutually agreed to by Liberty and

prospective Customer.

(h) In the event prospective Customer cannot provide the information

specified in Section 3.4(g) above, it shall, if applicable, provide that

information for its parent company.

(i) Liberty shall not be required to perform or to continue service under

any Rate Schedule on behalf of any Customer or prospective Customer which is or

has become insolvent or which, at Liberty's request, fails within a reasonable

period to demonstrate creditworthiness in accordance with Section 3.4(g);

provided, however, that such Customer or prospective Customer may receive

service under any Rate Schedule if it provides Financial Assurances pursuant to

Section 32. For purposes of this Section 3.4(i), the insolvency of a Customer

or prospective Customer shall be conclusively demonstrated by the filing by

Customer, or any parent entity thereof or guarantor of Customer, of a voluntary

petition in bankruptcy or the entry of a decree or order by a court having

jurisdiction in the premises adjudging the Customer, or any parent entity

thereof or guarantor of Customer, bankrupt or insolvent, or approving, as

properly filed, a petition seeking reorganization, arrangement, adjustment or

composition of or in respect of the Customer, or any parent entity thereof or

guarantor of Customer, under the U.S. Bankruptcy Code or any other applicable

federal or state law, or appointing a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the Customer, or any parent entity

thereof or guarantor of Customer, or of any substantial part of their property,

or the ordering of the winding-up or liquidation of their affairs, with said

order or decree continuing unstayed and in effect for a period of sixty (60)

consecutive days.